State pension blow as DWP rejects petition to lower age and increase sum to £416 | Personal Finance | Finance

Spread the love

Many Britons are dissatisfied with the state pension as it currently functions, and have petitioned for change. At present, the state pension age is 66 and rising, having been 60 for women and 65 for men in the past before age equalisation.

Similarly, the full new state pension currently provides a payout of £185.15 per week, and £141.85 weekly for basic state pensioners.

This typically hinges on National Insurance contributions, but some may get less than the full new state pension if they were contracted out before April 6, 2016.

However, some would like to see the state pension sum increased to provide more support to older Britons, while lowering the state pension age to 60 for all.

Over 34,000 people signed a Parliament petition calling for an increase to the state pension to £416.80 per week, and a lower retirement age.

READ MORE: State pensioners could boost sum by up to £14.75 per week

Instead, the Government has looked towards the triple lock, which is set to deliver a 10.1 percent boost from April this year – the largest of its kind.

This will take the full basic state pension to £156.20 per week, and the full new state pension to £203.85 weekly.

The Government also cited further support available to pensioners, including a cost of living payment, free bus passes, free prescriptions, and winter payments. 

Low-income pensioners may also find they are eligible for Pension Credit which may provide a valuable boost.

Changes to the state pension age will also not be reversed, as the Government asserts “on average, people are living longer”.

With life expectancy taken into account, the Department argued increases have helped to maintain the cost and sustainability of the state pension.

When it comes to the state pension age, it appears the only direction is up, as a review is currently pending on the matter.

While the DWP told “no decision has yet been made” on the state pension age, planned increases to 67 and 68 have already been laid out in legislation.

Furthermore, recent reports suggest changes to the state pension age could also be accelerated, with a rise to 68 potentially happening in the “late 2030s”.

The Government has until May 7, 2023, by law, to give feedback on the matter.

Author: Dhanraj7978

Leave a Reply

Your email address will not be published. Required fields are marked *